Swiggy, Zomato shares extend fall as quick commerce burn weighs

Shares of food and grocery delivery majors Swiggy and Zomato fell further as quick commerce burn takes a toll.

Swiggy’s market capitalisation has now fallen below $10 billion, while Gurugram-based Zomato’s valuation slipped under $23 billion.

Zomato’s shares were down 4.34% to Rs 215, while Swiggy’s declined 4.74% to Rs 343.35 on the BSE as of 01:56 PM.


Last month, global brokerage firm Jefferies flagged rising competition in the quick commerce space, projecting 2025 as a year of consolidation for Zomato following its strong rally in 2024, during which its valuation more than doubled. While Jefferies acknowledged Zomato’s robust execution and growth potential, it cautioned that intensifying competition could lead to aggressive discounting, posing risks to medium-term profitability.

Meanwhile, Bengaluru-based Swiggy reported lower-than-expected Q3 earnings last week.

"Given the heightened competitive intensity and continued investment in dark stores, we expect the losses to further widen in Q4. While food delivery KPIs (on growth, MTU increase, etc.) were better than Zomato, the quick commerce KPIs lagged Zomato, particularly in terms of order growth & contribution margin (CM)," said BofA Securities.

Motilal Oswal echoed similar concerns, stating that while food delivery remains a stable duopoly, increased competition and aggressive dark store expansion have reset profitability expectations for the quick commerce sector in the near term.